Vietnam’s capital Hanoi experienced a strong economic upswing within the first five months of the year across the tourism, trade and services sectors.

According to Dau Ngoc Hung, the director of the municipal statistics office, the country’s total retail sales of goods and consumer services recorded 336.5 trillion VND ($14 billion), marking a 10% rise compared to the same time last year.

Furthermore, retail sales of goods hit 215.8 trillion VND, making up 64.1% of the total and registering 10% year-on-year growth.

Hotel and restaurant revenue grew 12.4% year-on-year to hit 43 trillion VND, accounting for 12.8% of the total sales, The Star reports.

In addition, growth in travel and tourism services surged 48.9% to 10.6 trillion VND, 3.2% of the total. There was also positive growth recorded in other service sectors, with a 4.3% increase to 67.1 trillion VND, or 19.9% of the total.

Moreover, the number of visitors to Hanoi last month was estimated at 547,000 conveying a marginal month-on-month decline of 1%, but 42.9% higher than the same time in 2023.

Whilst between January and May, the figure reached 2.641 million, a strong 42.9% year-on-year rise. Domestic tourism experienced a 16.2% annual increase, with 724,000 visitors heading to the capital.

Additionally, Hanoi’s Consumer Price Index (CPI) increased 5.31% year-on-year in May, predominantly fuelled by rising costs within 9 of 11 commodity groups. The most prominent rise was registered in the education sector, with a 32.87% increase.

Also, the Hanoi leaders highlighted tourism and farm products with clear traceability as key priorities to meet consumer demand in the upcoming months. This strategic emphasis is anticipated to reinforce Hanoi's economic recovery and set the stage for ongoing growth.